Is your donation helping the cause, or paying the fundraiser?

Fundraising professionals can take large chunks of your charitable donations, leaving little for the cause itself.

April 26, 2011|Paul Muschick | The Watchdog

When Judy Livny of Allentown got the call asking if she'd be willing to donate to the Allentown Firefighters, she felt it was a worthy cause and made a pledge.

She had second thoughts when she got the pledge material in the mail and learned not all of her money would be going where she thought it would. In fact, most of it wouldn't.

The letter Livny received said Allentown Firefighters had contracted with Atlantic Productions to conduct the benefit, and a "percentage of all proceeds do go directly to the Allentown Firefighters."

How much of a percentage, she wondered? She called the number on the letter and said she was told 25 percent of her donation would reach the firefighters. The other 75 percent would be kept by Atlantic Productions, to pay for the fundraising campaign.

That was a deal-breaker for Livny. She decided not to follow through on her pledge.

"I would be happy to donate directly to the firefighters if I knew that they would be receiving the whole amount," Livny told me.

This is a great example of why you should be cautious when choosing causes to support. Making a donation through a telemarketing or mail campaign could result in your donation being significantly watered down if a professional fundraiser is doing the soliciting. Always research your causes first, and look for a way to get your money to them directly, avoiding the middleman.

You can verify a charity through the Pennsylvania Department of State, which also regulates charitable solicitors. Allentown Firefighters is a nonprofit but not a charity, so your donation would not be tax-deductible, said John Stribula, president of IAFF Local 302 (610-821-6903).

He told me the union is raising money to help some of its most-unhealthy and oldest members supplement their benefits. Money also could be directed to other causes such as fire prevention efforts, but in the past 10 years, he said, all of it has gone to the members welfare fund.

Stribula said the union negotiated the 25-75 split, and while it would love to get more, that's the best it could do now. In the past, he said, the IAFF had received as much as 30 percent.